5G for monetizing the industry digitalization
5G will bring new level of performance and new characteristics to the telecom networks enabling new services, new ecosystems and new revenue streams. 5G is expected to play a major role in industry digitalization. Our report The 5G business potential shows that this is an USD 619 billion revenue opportunity for telecom operators by 2026. To leverage the power of 5G technologies, operators need to rethink their role and what value to deliver, and what business models to use.
5G business models will be diverse and granular to fit diverse needs and to enable value extraction from both extreme low cost and high-performance use cases. Understanding of a new set of customers and value chains is imperative and operators need to build their strategy on what industries they want to serve and how.
Our market research shows the growing interest in 5G from industries. Respondents would be willing to pay a premium for an enhanced service using 5G if it provided faster data speeds, lower latency and increased bandwidth. The industry decision makers already have a view on what pain points 5G would resolve and what use cases would benefit most from the new technology.
Capturing this market potential requires investment in technology, as well as business development, go-to-market models, and organizational adaptation.
Operators can start addressing the interest from industries already now, testing new business models and create additional revenue streams. LTE-based IoT technologies such as CAT-M1/NB-IoT enable massive IoT use cases already in existing networks. By experimenting and rethinking what role to take, operators will be prepared to capture the full business potential of 5G.